The opportunity to own and run a successful self-storage facility in central Rotorua is available via CBRE, providing a low-maintenance, straightforward investment in a popular sector.
The large property, located at 8,10 and 12 Railway Road and 151 Lake Road, just off State Highway 5 in central Rotorua, is being marketed by John Holmes and John Bedford of CBRE. Offered as a freehold going concern (land, buildings and business); the property is for sale by expressions of interest closing at 4pm on August 12.
Offering a significant 7797sq m land holding with two street frontages, the property is home to Lake Storage, a well-established self-storage business which has been operating at the site since 1993, says Holmes.
“Lake Storage has a consistently high occupancy rate in its 417 storage units, with only seven currently vacant. Its excellent location close to the town centre means it is a convenient option for locals requiring storage, resulting in a stable, long-term customer base.”
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Lake Storage is a well-maintained, large-scale facility which offers storage units of various sizes arranged in separate blocks. Storage spaces ranging from wardrobe-sized 3.4 cubic metre units right up to large garages 102 cubic metres in size are available.
Occupiers’ belongings are protected by a range of security measures including an electric fence, alarm system and after-hours security patrol. Video surveillance and an electronic swipe card entry system which allows selective entry to individual blocks provides a further level of security. The site is managed by one full-time employee.
The popularity of self-storage properties as investment holdings has increased rapidly over recent years, resulting in storage assets now being considered a sub-sector of the commercial investment market in their own right, says Bedford.
“Storage property investment is no longer solely the domain of smaller-scale individual investors. The sector is now attracting institutions and bigger offshore investors, with key Australia-based examples including the $1.2 billion Abacus self-storage portfolio; as well as the ASX-listed National Storage REIT which both own storage assets in New Zealand.”
Storage properties’ large occupier base provides a diversified income stream compared with single-tenanted industrial buildings, while typically also offering a highly stable cash flow and superior yield, Holmes says.
“Demographic trends including retirees downsizing their homes and requiring storage for excess household items, as well as market trends such as high house prices, are expected to continue to fuel demand for storage units.”
The property occupies a highly-visible position in an excellent location within an established commercial area on one of the main arterial routes into central Rotorua, says Bedford.
“Lake Storage is well-located close to the town centre, where development land is scarce and occupiers benefit from a surrounding large residential catchment.”
Held in four titles with underlying Industrial 1 & 1E zoning, the opportunity also exists for the new owner to divest part of the property, he adds.
The property has excellent visual exposure to Lake Road, which captures a lot of traffic from State Highway 5 heading into the town centre, says Holmes.
“With most of the town’s other storage facilities located further from the town centre, this could be considered the best positioned storage facility in Rotorua.”
The property is surrounded by several well-known occupiers including Bunnings Warehouse, Repco and Placemakers.
- Article supplied by CBRE
